Hard Money Loans in Highland Park
Suppose you've run across this really great bargain for a fix and flip property located in a great location, and you are either an experienced real estate investor or a newbie who wants to try his hand at flipping. Professional house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of forty to fifty grand on a regular basis. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have played a significant part in their successes. That said, you have recently been brushing up your rehab and remodeling knowledge, have got a licensed contractor lined up and are positive that you will be able to do a stellar job on this home.
But financing can be a separate question entirely. For those who opt for a conventional loan via a bank, you will need to wait around roughly 30-60 days up until the time the mortgage is authorized and your funding is readily available. Thus if you are looking for a fast closing, it is important to realize that this could set you back by weeks, causing you to miss out on the sale.
To add to it, banks have already been tightening up their lending criteria in recent years, rendering it more tough for people to obtain a traditional loan if their credit situation is not perfect or he does not possess a consistent salaried occupation. So do you have to stop trying and forego your ambition to venture into the real estate market? Certainly not, due to the fact you could always use the Highland Park hard money loan approach to finance your rehab project.
A hard money home loan in Highland Park offers you what is deemed crucial to many real estate sales — a fast closing of only a few weeks and oftentimes even less. Additionally, loans can be done for up to 70% loan-to-value of the as-is home value, as established by a licensed appraiser. With the lending rates starting out near 10%, hard money real estate loans may appear, at first glance, to be more expensive in comparison with conventional bank lending products. But the lengths of these loans tend to be rather short, which makes the interest rate less important. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, very much like every other expense in connection with a project. Right after you fix up and unload the home, recovering this expense is just like recouping the money you spent for new kitchen appliances you placed into the place.
Besides, hard money mortgages are not hard to qualify for, regardless if you have poor credit. The applicant's credit score is not the sole determining factor for Highland Park hard money lenders — they also look at the home, its market valuation, where it is located, and its capacity to earn back their investment if everything does not go as intended. How much of their own money an applicant can put down in advance towards the home, how much experience he has in real estate investments, and selling price of comparable homes in the same vicinity are various other details that go into determining an applicant's eligibility for a hard money real estate loan.
So should you come across a very good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Highland Park, equipped to loan you the cash you'll need. Complete the form on this page or call us and let's discuss your project.
A loan specialist will be in touch shortly